Do crypto sites have most of their funds in fiat money?

[Don Pedro Dinero]

Faucets reduce their satoshis payments when bitcoin goes up and it seems that at least some signatures campaigns also do that. This has brought me to think that crypto sites still have most of their funds in fiat, because if they had most of their funds in bitcoin price swings wouldn’t matter regarding payments.

I can understand that in a sense: bitcoin is volatile and have most of a company’s funds in it is risky but the downside I see is that if even crypto companies hold most of their funds in fiat is that we have a long way to go until mass adoption and usage of bitcoins.

[Shotz]

I would imagine that they have about 30-40% in fiat money (depending on the size of their holdings) and then 60-70% in crypto.  They obviously believe in blockchain technology if theyre making a site to provide a service for blockchain.

[newinbtc]

Reserved

Faucets reduce their satoshis payments when bitcoin goes up ?
They get paid from advertisements when they get less money how they can distribute from own pocket

some signatures campaigns also do that?
Yes they can do Becoz price was rose suddenly they want to save money

This has brought me to think that crypto sites still have most of their funds in fiat ?
No , they Transfer funds to escrow provider in advance.. not 100% funds in bitcoins , Some part is stored in Fiat currency

[Rajat97]

Faucets reduce their satoshis payments when bitcoin goes up and it seems that at least some signatures campaigns also do that. This has brought me to think that crypto sites still have most of their funds in fiat, because if they had most of their funds in bitcoin price swings wouldn’t matter regarding payments.

I can understand that in a sense: bitcoin is volatile and have most of a company’s funds in it is risky but the downside I see is that if even crypto companies hold most of their funds in fiat is that we have a long way to go until mass adoption and usage of bitcoins.

Faucets farming was a tread of earlier times but now it has been banned due to tremendous flow of bitcoins in a short span. They do have most of their crypto currency in flat

[AtheistAKASaneBrain]

They must have a good amount of both to be able to handle the demand of their clients.  They have to, otherwise their business wouldn't work.

My biggest fear with exchanges is that they run out of funds to meet the withdraw orders, that's when it enters a slippery slope and then most exchanges (specially altcoin exchanges) will be very tempted to take the money and run. This is one of the main reasons we need decentralized exchanges badly. All these coins in the hands of a few people is absolutely insane and a honeypot for inside jobs and hacking.

[hajimasan]

Faucets reduce their satoshis payments when bitcoin goes up and it seems that at least some signatures campaigns also do that. This has brought me to think that crypto sites still have most of their funds in fiat, because if they had most of their funds in bitcoin price swings wouldn’t matter regarding payments.

I can understand that in a sense: bitcoin is volatile and have most of a company’s funds in it is risky but the downside I see is that if even crypto companies hold most of their funds in fiat is that we have a long way to go until mass adoption and usage of bitcoins.

I don't think it is the reality , Because in my opinion the best thing in the bitcoin and another coins is that we can't understand well that how the market can fluctuate much because most of the times we find that nothing is sure in any campaign and also in the faucet sites .
Most of the times before to start the project people already thought that they will buy bitcoin or another coin with that amount of money that they have , if they have money in stock but after the problem of the increase in the price they are facing much problems then surely they will reduce the payout Because they don't want spent more fiat money than what they planned , so all things these are decided by the project scripted plans that works well .

[Bolt Brownie]

It's hard to know. I thought about that as well, and what you are saying makes sense, but there is another point of view that you are missing out.
Let's say they hold all their funds in crypto. The swing is good for them as well, and keeping payments shouldn't matter of course, but the thing is, why wouldn't they drop payments even if they kept all their funds in crypto? We are still not used to attribute value to bitcoin itself. We see campaign payments, and stuff to buy, and all of us, or at least most of us, see how much that is worth in fiat.

I think campaigns do the same. Let's imagine BTC was now worth $500K, do you really think you should be paid at the current rates? This would be a huge payment for the support we are giving, and we would be completely overpaid if the post rates didn't drop.
Or if that is hard for you to imagine, let's say a coffee mug is worth 0.0008 BTC (a little over $4). You were ok in buying that mug, but the BTC is now worth 10x more. Wouldn't you say that paying $40 for that mug would be to much? Even if we were all handling just crypto, you would probably think that the merchant should update their price. That's what campaigns do I guess.